Transactions & Cases Detail



Transaction/Case Details

Rayonier Advanced Materials Inc. to acquire Tembec Inc. for approximately US$807M

BUSINESS SECTOR

Forestry & Paper

LEAD OFFICE

Montreal

VALUE

807 Million USD


OVERVIEW

On May 25, 2017, Rayonier Advanced Materials Inc. ("Rayonier") and Tembec Inc. ("Tembec") announced a definitive agreement under which Rayonier will acquire Tembec, providing the combined company with leading and complementary positions in key high purity cellulose end-uses and diversified earning streams from packaging, paper, high-yield pulp and forest products businesses. The transaction will be carried out by way of a court-approved plan of arrangement. Tembec shareholders will have the right to elect to receive either (i) C$4.05 in cash or (ii) 0.2302 of a share of Rayonier Advanced Materials common stock, for each Tembec common share. These elections are subject to proration to ensure that no more than 63% of the aggregate Tembec shares shall receive the cash consideration and no more than 37% will receive the stock consideration. The purchase price of approximately US$807 million, including the assumption of US$487 million of debt net of cash, represents a multiple of 4.6 times LTM pro forma EBITDA after expected synergies or 6.3 times before synergies.

Rayonier is a leading global supplier of high purity cellulose, a natural polymer commonly found in cell phones, computer screens, filters and pharmaceuticals.

McCarthy Tétrault LLP advised Rayonier with a team led by Clemens Mayr (M&A).

Contact


 
For general information on McCarthy Tétrault Transactions & Cases, please contact [email protected].

Related Area of Expertise


M&A
read /